Allow power to industry at Open access rates, urges FKCCI at pre-Budget meet

Our Bureau Bengaluru | Updated on February 10, 2020

Federation of Karnataka Chamber of Commerce and Industry (FKCCI) has urged Karnataka Government to allow power to industries at Open access rates.

Participating in the pre-budget meeting called by Karnataka chief minister, BS Yediyurappa, who also holds finance portfolio, of industry associations and chambers of commerces, CR Janardhana, President, FKCCI raising energy related issues, said “Karnataka is producing surplus power and is selling the power to other states under open access and imposing higher rates to our industries.”

“Here we like to bring it to your attention and request you to supply the power at Open access rates to our industries. Also LT 5 limit in our neighbouring states is up to 100HP, but in our state the limit is 66 HP, we request to enhance the LT5 limit from 66 to 100 HP,” he added.

Talking on public procurement policy, Janardhana said “The Industry has been demanding a comprehensive public procurement policy on the lines of government of India’s policy. Though this is mentioned in several industrial policies, steps have not been taken to implement the same. The government departments themselves insist for Earnest money deposit, and price preference policy is not implemented.”

Compete with China

FKCCI suggested to chief minister of continuation of ‘Clusters for compete with China Scheme’ and its vigorous implementation. “It is one of the important schemes announced by the previous government for which sufficient Budget provision has been made during the FY 2019-20. The scheme envisages development of tier-II and III Districts and encourage make in India.”

Janardhana said “We have prepared a Road map to actively involve with State government to take forward the “Compete with China” scheme to its logical end. We are planning to organize ‘Investors Meets’ in all the nine districts where Compete with China initiatives are announced. We urge the Government to speed up the scheme and rigorously implement it.”

Minimum Wages

On the Minimum Wages front, FKCCI, said “Minimum Wages revised by our State is the maximum when compared to the Minimum Wages in other States across India.

This drastic rise in Minimum Wages is due to the fact that the Advisory Board has not considered the weightage of 10 given by the Statistical Department of the Government on the HRA (Rentals) paid by employees/workmen to be considered in arriving at the Minimum Wages and instead has taken some data on its own and arrived at the HRA Component. In fact 40 per cent of the revised wages is due to HRA as against the recommended weightage of 10 per cent.”

“Under these circumstances, we request the government to reduce the Minimum Wages by 30 per cent which is comparable to the neighbouring States. This will help exports in particular and industrial sector in general,” said Janardhana.

Published on February 10, 2020

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor

You May Also Like